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The potential future of the U.S. and Global economic game.
Here’s what I see potentially coming. The United States is going to integrate bitcoin and stable coins into the current financial system to shore up the dollar and to lower the national debt. They will lower the debt by purchasing bitcoin and owning a portion of the bitcoin network, as well as revaluing gold certificates to bolster up the balance sheet. This will allow budget neutral accumulation of bitcoin. They are going to integrate stable coins into the financial system to create massive demand for US treasuries. It has already been proven that it’s unsustainable to so heavily rely on nation states, especially now that competing nations like China are the largest buyers of US treasuries, and they are looking for ways to move away from it such as the BRICS nations, stockpiling and hoarding gold. Large segments of the global population just want a way to transact without their local currencies being unreliable, inflated away, and their banks not allowing them to transact freely. That need in the global marketplace is gonna fuel massive demand for stable coins when the infrastructure and integration is complete. It’s gonna make the dollar dig its feet in as the global reserve currency for another generation or two. So what does all this mean for asset prices, companies, and stocks? Companies are going to start acquiring bitcoin on their balance sheet similar to how Strategy and others are doing. This is gonna be a add-on effect to them having their cash reserves and their treasuries on their balance sheet generating yield, but bitcoin will be the more attractive choice since it’s returns far exceed what treasuries pay out. Especially with interest rates likely to plummet with the higher demand. As long as companies keep producing goods and services that the world wants to consume and spend their dollars on, they’ll be fine. As far as real estate goes, people who store their wealth in real estate rather than just as a place to live, are going to seriously reconsider bitcoin as a better, more secure, more liquid, more convenient store of their wealth. Real estate transactions might also take place with more Blockchain integration due to the attention the technology will get because of bitcoin, but that’s just a small new operational accounting effect, not a fundamental structural global wealth effect. Lastly, how does the Fed still fit into this. Assuming they retain their role of stable prices and maximum employment… They will continue to lean into interest rate cuts and money printing to inject liquidity during credit crisis and recessions. However the need to do this over time would actually decrease, and they would also considered buying bitcoin much like they do with Mortage backed securities. It’s unclear for now exactly how all these pieces will fit together. Throw Ai in the mix and it really starts to get wonky. The game has a set of rules. And you can change the rules only so much before you find yourself playing a whole new game. Time will tell what comes next. One thing is clear. All roads lead to the money printer in the short-medium term. All roads lead to bitcoin in the short, medium, and long term. submitted by /u/Whereas-Informal [link] [comments]
Here’s what I see potentially coming. The United States is going to integrate bitcoin and stable coins into the current financial system to shore up the dollar and to lower the national debt. They will lower the debt by purchasing bitcoin and owning a portion of the bitcoin network, as well as revaluing gold certificates to bolster up the balance sheet. This will allow budget neutral accumulation of bitcoin. They are going to integrate stable coins into the financial system to create massive demand for US treasuries. It has already been proven that it’s unsustainable to so heavily rely on nation states, especially now that competing nations like China are the largest buyers of US treasuries, and they are looking for ways to move away from it such as the BRICS nations, stockpiling and hoarding gold. Large segments of the global population just want a way to transact without their local currencies being unreliable, inflated away, and their banks not allowing them to transact freely. That need in the global marketplace is gonna fuel massive demand for stable coins when the infrastructure and integration is complete. It’s gonna make the dollar dig its feet in as the global reserve currency for another generation or two. So what does all this mean for asset prices, companies, and stocks? Companies are going to start acquiring bitcoin on their balance sheet similar to how Strategy and others are doing. This is gonna be a add-on effect to them having their cash reserves and their treasuries on their balance sheet generating yield, but bitcoin will be the more attractive choice since it’s returns far exceed what treasuries pay out. Especially with interest rates likely to plummet with the higher demand. As long as companies keep producing goods and services that the world wants to consume and spend their dollars on, they’ll be fine. As far as real estate goes, people who store their wealth in real estate rather than just as a place to live, are going to seriously reconsider bitcoin as a better, more secure, more liquid, more convenient store of their wealth. Real estate transactions might also take place with more Blockchain integration due to the attention the technology will get because of bitcoin, but that’s just a small new operational accounting effect, not a fundamental structural global wealth effect. Lastly, how does the Fed still fit into this. Assuming they retain their role of stable prices and maximum employment… They will continue to lean into interest rate cuts and money printing to inject liquidity during credit crisis and recessions. However the need to do this over time would actually decrease, and they would also considered buying bitcoin much like they do with Mortage backed securities. It’s unclear for now exactly how all these pieces will fit together. Throw Ai in the mix and it really starts to get wonky. The game has a set of rules. And you can change the rules only so much before you find yourself playing a whole new game. Time will tell what comes next. One thing is clear. All roads lead to the money printer in the short-medium term. All roads lead to bitcoin in the short, medium, and long term.
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